State-owned Bahrain Petroleum Company (Bapco) is planning to issue its invitation to bid on the engineering, procurement and construction (EPC) contract for its planned $1.5bn Aromatics Complex after the award of the EPC contract for the Bapco Modernisation Programme project, according to industry sources.

“Bapco officials have signalled to contractors that the tender for the petrochemicals facility will come after the award of the contract to modernise the refinery,” said one source.

In September, Bahrain's oil minister, Sheikh Mohammed bin Khalifa al-Khalifa, said he expected the refinery expansion contracts to be signed before the end of the year.

Currently contractors are optimistic that Bapco will hit this target.

“This is a big contract and there will be a lot of details to be finalised but we are still expecting it to be signed before the end of the year,” said the source.

“If there are delays, however, this is likely to impact the timeframe for the Bapco Aromatics Complex.”

The EPC contract for the Bapco Modernisation Programme project is estimated to be worth $5.5bn.

Bapco Modernisation Program aims to boost processing capacity of the country's only oil refinery to 360,000 barrels a day (b/d)  from the existing 267,000 b/d.

In addition to expanding the refinery’s capacity, it will allow the refinery to process heavier grades of oil.

The Bapco refinery was built in 1936 and is an export-oriented plant with around 85 per cent of its production exported.

About one sixth of the crude processed at the refinery comes from Awali field, while the remainder is pumped from Saudi Arabia's Abu Saafa offshore field through a 54 kilometre pipeline.